National Pension Service Changes Shareholding Purpose to 'General Investment' for Kakao and Pay

The National Pension Service (NPS) announced on the 1st that it has changed its purpose of holding shares in Kakao and KakaoPay from "simple investment" to "general investment."

The purposes of holding shares are divided into three categories depending on the activeness of exercising shareholder rights: simple investment, general investment, and management participation. Simple investment does not involve exerting influence or involvement in management rights. On the other hand, general investment allows more active exercise of shareholder rights within the scope that does not affect management rights, such as opposing director appointments, proposing dividends, and requesting dismissal of executives involved in illegal activities.

Kakao has recently been embroiled in allegations of market manipulation related to the SM Entertainment stock price manipulation case.

On the same day, the NPS also disclosed the sale of shares in Kakao and KakaoPay. As of the end of March this year, the NPS held 28,339,256 shares (6.36%) of Kakao, but sold 4,263,313 shares on the 26th of last month. The shareholding ratio decreased to 5.42%. The KakaoPay shares were 6,655,465 shares (5.02%) as of July 13 last year, but 691,668 shares were sold on the 26th of last month, reducing the shareholding ratio to 4.45%.

Additionally, on the same day, the NPS changed the purpose of holding shares in BNK Financial Group, Kiwoom Securities, and others from simple investment to general investment.